ZipCandy

Sales Rep

Comp Plan Q

I am working at a series A right now. (yes, I know.) I'm have some questions about comp plans.

At the moment I'm on a 100/200k split. No historic sales data so 200k is basically a number they pulled out of their ass to secure me - i take responsibility here, should have done more due diligence.

I am selling on both m2m and annual agreements. I get paid annualized regardless.

(100 users * $10 per user/month * 20% = my commish) not real but just an example.

However, if I have a client put 100 users on m2m contract and then decide to bump up to 500 users after signed agreement. I get paid on 100 users. Even if I hand off the client at 8am to CS, and they decide at 8:01am to upgrade to 500... I don't get credit or paid on the 400+ increase. Credit goes to CS.

Is this standard?

I don't want to be unfair to my CS team but I've always had a comp plan that was flexible within a given period. We actively allow for m2m to lend flexibility to clients and use that as a strength of our company but i feel like I'm getting the short end.

Am I being dramatic here or is this normal?

💰 Compensation

8

11 comments

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Kaladin

Fire Starter

6

Director Enterprise Sales

I won’t say it’s unheard of, but in almost every successful sales org I have seen there is normally an up sell period so you don’t get penalized for getting your foot in the door first, or doing land and expand style selling.

ChunkyButters

Tycoon

0

AE

^this

After signing, it's norm for the AE to own an account for 3-6 months giving them upsell potential. We have several products that fit after about 3 months and clients don't usually buy right away. But, I've done 90% of the work pre-sale and then finish the oppty after they are a client.

Sunbunny31

Politicker

4

Sr Sales Executive 🐰

Agreed with the rest, it's common to have a period of time where add-ons and net new sales also belong to the rep. 3 - 6 mos is common.

It incentivizes good behavior - get the deal in the door, have the customer start realizing value, and they expand. This keeps the initial rep for stalling on the deal until all users/seats can be onboarded, for example.

ZipCandy

Good Citizen

1

Sales Rep

This is my perspective also!
I provided the example that I could sell someone on a m2m plan at a higher contracted amount. So if I sell them 100 seats and they only onboard 10. Since we invoice on usage, we will bill for 10. But per my comp plan, I’m paid on 100 users… at some point company will claw back. But my scenario went unheard. I’m thinking it will only be dealt with if it becomes reality.

Ethically, I cannot sell someone more than what they are actually going to use to make a check. I value my word & reputation. So we will see. This just may not be the fit for me.

Pachacuti

Politicker

3

They call me Daddy, Sales Daddy

You need to bring this scenario up to your management. A line has to be drawn somewhere but your 8:01 shouldn't be that line. 3 months would be a good line.

ZipCandy

Good Citizen

0

Sales Rep

I asked about a true up period and it was shot down. Going to bring this up again.

ZVRK

Politicker

1

Enterprise Account Executive

Sounds unfair, yes. If you see this happening often (clients upgrading at that pace), definitely bring this up with your manager.

Maximas

Tycoon

0

Senior Sales Executive

I second this.

Justatitle

Big Shot

1

Account Executive

Not unheard of but still rather shitty. Most often if it is a proof of concept project and that has been made clear in the sales process the rep will get credit for when the project goes live provided it is on a mutually agreed timeline.

TennisandSales

Politicker

1

Head Of Sales

This is common. Although some companies have that flexibility, many don’t. I’ve only worked at companies that DONT.

I wouldn’t get too bent out of shape about it because leadership DOES have to draw the line somewhere. Also, if they go from 100 to 500 users in a day……then my first thought would be, why couldn’t you secure 500? CS clearly didn’t do anything.

CuriousFox

WR Officer

0

🦊

Nothing that I'd be alarmed about.

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